In 2005, Harold Medina, then a real estate newspaper special section editor, asked for articles on HOA law issues. The name “HOA Homefront” also was his idea, so thanks to him for creating and naming this column.
After more than 750 columns and as the column enters its 21st year, here are 21 suggestions on HOAs becoming more positive communities. How many does your community already follow?
1. Adopt a code of conduct for directors, committee members, and homeowners.
2. Use educational resources regarding HOA governance. Many management companies, HOA law firms, and your local Community Associations Institute (CAI) Chapter offer board training, and CAI also has on-line courses.
Board meetings
3. Embrace open forum – it’s a valuable opportunity to hear and show respect for neighbor concerns.
4. Save HOA business discussions for board meetings.
5. Adopt a time limit goal for board meetings.
6. Use consent calendars for routine non-controversial agenda items, saving time and energy for other decisions.
Board leadership
7. Split board votes are ok – don’t force unanimity, which makes dissenting directors feel disloyal.
8. Encourage directors to embrace both their legal responsibilities and an attitude of service. Remember, directors make decisions about homeowners, but they’re still neighbors too.
9. Unlike for-profit corporations, HOA presidents actually have very little individual power- boards should elect directors as presidents who understand that.
Managers
10. Hire the best manager for your community, not the cheapest. Focus first on the services provided and the manager’s credentials.
11. Ask your manager for input on board decisions – they’re a valuable part of the “due diligence” element of the Business Judgment Rule.
12. The board directs and the manager manages. Allow (and expect) the manager to handle HOA vendor performance and to carry out board directives.
13. Allow and expect your manager to give their best advice, even if it is not what you’d hope to hear (doubly so for the HOA’s attorney too!).
HOA finances
14. Budget for actually expected expenses, not what you hope for. HOAs cannot react as quickly as can individual homeowners, so budgets should be conservative and not overly optimistic.
15. Follow the reserve study recommendations, and accumulate savings to offset the scientific fact of the deterioration of elements the HOA is responsible to maintain and repair. Those funds protect the HOA from quietly falling into insolvency.
16. The Davis-Stirling Act doesn’t allow an excuse of “we can’t afford it” – the HOA’s duty to maintain and repair common area is unconditional.
Enhancing community
17. Don’t be too quick to pursue litigation. IDR, ADR, or sometimes just a simple chat may resolve disputes – you can always ratchet up the issue by involving the HOA’s attorney later.
18. Transparency means sharing information with the community. Overcommunicate – you can’t communicate too much with the membership. Web sites, email updates, and even town hall meetings build community cohesion.
19. Embrace technology- Use websites as a communication tool, embrace electronic voting, and encourage homeowners to opt for electronic communications (unless the CC&Rs already provide for that).
20. Respect differing viewpoints. Disagreement doesn’t mean disrespect.
21. Promote your community to members, emphasizing the shared positive elements uniting them. That helps place disagreements regarding HOA operations in perspective.
I hope this helps and that your HOA scores high!
Richardson, Esq. is a fellow of the College of Community Association Lawyers and partner of Richardson Ober LLP, a California law firm known for community association advice. Submit column questions to kelly@roattorneys.com.
